Senator Calls for Collection of Small Business Lending Data

Circulating a letter for Senate signatures, Senator Cory Booker (D-NJ) is calling on the Consumer Financial Protection Bureau (CFPB) to implement Section 1071 of the Dodd-Frank law. The law requires banks to report information on loans to better identify needs for capital. In his letter, Senator Booker states:

“Analyzing access to credit and removing barriers is imperative when considering the significant role of small business on job creation and the plummeting of small business lending since the Great Recession. Current data collection efforts are fragmentary and provide an incomplete picture of lending in the small business marketplace. Section 1071 mandates the CFPB to centralize this data collection to make it easier for financial institutions to report it and the general public to use it.”

It is important to note that no personal loan information would be shared, but the data collection would give private and public lenders and small businesses a much-needed lens on lending.